Homestead Property Tax Credit — Trust Ownership Eligibility

Current understanding

Section 510 of the Income Tax Act of 1967 (1967 PA 281, MCL 206.510) defines ‘owner’ and homestead eligibility for Michigan’s individual income tax property tax credit (the homestead property tax credit claimed on Form MI-1040CR). SB 1045 (103rd Legislature) would clarify that a homestead placed in certain trusts remains eligible for the credit and clarify who counts as the owner for credit purposes. The bill has been introduced; specific trust categories and definitional language remain to be recorded from the bill text.

Evidence log

• 2025-11-06 — Individual income tax: property tax credit; definition of homestead; modify. Amends sec. 508 of 1967 PA 281 (MCL 206.508).: cross-connection with homestead-property-tax-credit-definition: Both bills amend adjacent sections of the Income Tax Act (secs. 508 and 510 of 1967 PA 281) governing the individual income tax homestead property tax credit — HB 5236 modifies the definition of homestead, while HB 5235 clarifies eligibility for homesteads held in trusts. (novelty: 2)
• 2025-11-06 — Individual income tax: property tax credit; owner and eligibility of a homestead placed in certain trusts; clarify. Amends sec. 510 of 1967 PA 281 (MCL 206.510).: HB 5235 amends sec. 510 of 1967 PA 281 (MCL 206.510) to clarify that homeowners who place their homestead in certain trusts remain eligible for the Michigan individual income tax property tax credit; introduced. (novelty: 2)

Open questions

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